The details in the latest Consumer Price Index report could compel the Federal Reserve to raise interest rates.

The report comes at a pivotal moment for the Federal Reserve, which is scheduled to meet next week to decide whether to hike interest rates.

The number matched analyst expectations and was even with July’s 3.4%.

Although the CPI data is important, the Fed's 2% inflation benchmark is tied to the annual growth in the personal consumption expenditures, or PCE, price index produced by the Bureau of Economic Analysis.

The bottom line on the August CPI data is expected to be that the Federal Reserve isn't making enough progress on bringing inflation down, said Meghan Swiber, senior U.S. rates strategist at BofA Securities.

Wholesale prices just flashed a warning that factories and farms absorb long before your grocery receipt does, and the Fed has to vote on interest rates before its own favorite inflation gauge even arrives.

The 10-year Treasury yield is nearing 5% as oil, tariffs and sticky service prices raise fears that Kevin Warsh may have to restart the rate-hiking cycle.

By Pablo Sinha Sept 10 (Reuters) - Gold prices dropped over 1% on Thursday after robust U.S. inflation data and rising oil prices increased bets for a Federal Reserve rate hike next week. Spot gold slipped 1% to $4,